Pre-Paid's Cash Picture Clouds Over

Pre-Paid Legal Services (PPD Quote) isn't the cash cow it once was.

Hurt by slowing business, the Oklahoma-based legal services provider milked only $11.3 million worth of cash flow -- down 27% from a year ago -- out of the latest quarter. The company, which generally touts cash flow as a key measure of its health, posted a 46% jump in cash flow just one quarter earlier.

Earnings rose 17% from a year ago to 54 cents a share, but other key metrics showed clear signs of deterioration. Third-quarter net income slipped $600,000 from second-quarter levels, and earnings per share fell sequentially for the first time in more than a year. Revenue fell for the first time in recent memory. ...